Gold: Minnow Syndicated could be sitting on something big at Newington, shares jump 34pc
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Syndicated Metals (ASX:SMD) is having immediate success at the high-grade Newington gold project in the WA goldfields.
In April, the former copper-focused explorer managed to stitch together two projects – Newington and Carterton – on an underexplored part of the Southern Cross greenstone belt.
For the most part, a maiden drill program around known gold prospects Dawsons, Newfield East and Newfield Central has come up with the goods.
At Dawsons, Syndicated hit high grades consistent with historical drilling, including 2 metres at 17.53 grams per tonne (g/t) gold, 76m from surface.
Anything above 5g/t is generally considered high grade.
A single hole drilled underneath Newfield East intersected multiple mineralised zones, which “confirms that the mineralisation continues and remains open at depth”, Syndicated says.
And while the explorer didn’t hit the motherlode around Newfield Central (which was previously mined at an eye-watering 22.68g/t), the company says future drilling is planned to test the structure north of known intersections.
The maiden program is “a solid first step” towards making a significant high‐grade gold system discovery at Newington, Syndicated managing director David Morgan says.
“Being able to confirm extensions to the key mineralised structures at all of the prospects drilled is a very encouraging step forward, particularly as the new results correlate with the historical high‐grade intercepts at Dawsons and the broader shallow intercepts at Newfield East,” Morgan says.
“All three prospects remain highly prospective for further extensions, new high‐grade discoveries and remain open in all directions.”
A new drilling program is scheduled to kick off next month.
Gold Fields has sold its 9.9 per cent stake in Gruyere JV partner Gold Road Resources (ASX:GOR) for $126.3m, capitalising on “significant gains” in the Gold Road share price since 2017.
It’s all part of a debt reduction strategy. Gold Fields says it remains fully committed to its 50 per cent interest in, and operatorship of, the Gruyere JV “and it has no intention of exiting that interest”.